Rustler
Level 15

Other questions

QB is perpetual accounting, there is no accounting close the books to do except for clearing the equity investment, drawing and retained earnings accounts to owner equity using journal entries.

 

if

drawing has a balance, debit owner equity and credit drawing for the balance

investment has a balance, debit investment and credit owner equity for the balance

retained earnings has a positive balance, debit retained earnings and credit owner equity for the balance ( if that balance is negative, reverse the debits and credits)